Welcome to readin – the best world tech news chanel.

Binance founder sentenced to four months in prison| GuyWhoKnowsThings

Facing intense legal scrutiny, Zhao, 47, who goes by CZ, was often dismissive. He described concerns about Binance as “FUD,” or fear, uncertainty and doubt, an abbreviation in the cryptocurrency world for false rumors intended to harm a company.

In November 2022, Zhao's industrial power increased after he helped take down Bankman-Fried with a series of social media posts that caused a run on FTX's accounts. When FTX had no money to pay its clients, Mr. Zhao briefly agreed to buy the trade, before walking away from the deal. Soon Mr. Bankman-Fried He was arrested on fraud charges.

A year later, it was Mr. Zhao's turn to face criminal proceedings.

In November, Binance agreed to pay $4.3 billion to various US agencies, including the Department of Justice, to resolve allegations that it had allowed terrorist organizations such as Hamas, the Islamic State and Al Qaeda to use its platform. Prosecutors said that under Zhao's watch, Binance had refused to comply with US sanctions, allowing access to clients in countries such as Iran, Syria and Cuba. The company also did not report suspicious transactions involving narcotics and child sexual abuse materials, the government said.

Zhao told Binance employees that it was “better to ask for forgiveness than permission,” prosecutors said in a recent court filing. He also boasted that if Binance had complied with US law, it would not be “as big as we are today,” prosecutors wrote.

In the end, Mr. Zhao pleaded guilty to a single criminal charge and admitted that he had failed to establish an adequate anti-money laundering system at Binance. He also resigned as CEO and accepted a $50 million fine. He has a fortune of 33 billion dollars, according to Forbesmaking him the richest cryptocurrency executive.

Share this article:
you may also like
Next magazine you need
most popular

what you need to know

in your inbox every morning